sharefund for children question., page-2

f,

keep things simple I say.

My 3 chilren were gifted a small sum of money each from Grandfather.
I opened a Commsec acc [ and am therefore the trustee and assume the tax liabilities ] in my name as trustee for X, Y and Z who were well under 21 at the time.

I bought and sold shares over the years and made considerable profit.
One account saves on transaction fees.

The taxation approach has been to calculate profit [and never carry forward losses] and report the profit divided by three as seperate individuals.

For many years there were never any dividends to be reported.

My rule of thumb is never rob the Tax Dept as it creates an administrative distraction.
The Tax Dept have never audited me and raised objection.
The children were in the work force getting group certificates so red flags were not triggered.
Now the children are well over 21 we are in run off mode and not making new purchases of shares -- now they each have their own share acc.

Obviously I am not complying with the letter of the law but I am reporting tax as the money flows in reality. Current dividends are just a hassel as they come acc payee only and with franking credits so I accept them as mine and deduct my rate of tax from the kids then give them the balance.

Commsec will draw a cheque in the childrens names and NOT me as trustee when there is a profitabe sale and we do not reinvest anymore.